Role of Consumer Behaviour in Marketing

Exploring Consumer Behaviour in Marketing and Decision-Making Process

by Sangeeta Bansal*,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 15, Issue No. 7, Sep 2018, Pages 532 - 539 (8)

Published by: Ignited Minds Journals


ABSTRACT

This paper explores Consumer behaviours function is to research the collection, purchase or use of ideas, goods and services to meet their requirements or desires by individual clients, groups or organizations. This applies to the behavior and underlying intentions of customers in the industry. The marketing manager's understanding of consumer behavior allows him to recognize consumer needs and wishes in the market. The customer follows a decision-making process characterized by identification of issues, alternative evaluation, decision about buying, decision after purchasing. The consumer behavior analysis suggests that consumers are business actors. The position theory approach suggests that consumers play different roles on the market. Consumers perform these positions in the decision making process, beginning with the data provider, from the customer to the payer and the disposer. The paper discusses cultural factors, methods, social factors and phases in marketing consumer behaviour.

KEYWORD

Consumer behaviour, Marketing, Research, Collection, Purchase, Ideas, Goods, Services, Individual clients, Groups, Organizations

INTRODUCTION

Over the past 25 years, extensive efforts and studies have been created to better understand human behavior in terms of its use. On both the entrepreneurial and institutional levels, the knowledge and understanding of customer behavior has become a central mission. Businesses have noticed, that they have to change their attitudes as consumers have taken on more competitive and challenging positions. That government, at the institutional level, has to know the quality of life and welfare of the population and consumption is a key issue of this knowledge. As we all know, the rise of consumer comportement studies as an independent field is an occurrence in the 1960s. From an obscure and intermittent analysis to a comprehensive study of all aspects related to customer awareness, it can be confirmed that since then a major breakthrough has been made. This accumulated effort has been subject to different analysis, whether it is from a scholarly or business, theoretical or empirical point of view. A wide range of literature on consumer behaviour are currently available, and it has also become a subject which is commonly integrated into the curriculum of university teaching. Consumer behavior is an individual's psychological part that makes a difference in buying certain products, services or other items. Any consumer's behavior depends on several factors that are extremely important to any marketing team or organization dealing directly with customers. Consumer behavior studies include the consumer quest, assessment, purchase, use and purchasing behaviour, and the disposal of the products purchased, which value the environment and personal characteristics. It is the body of knowledge that examines different aspects of individual purchases and use of products and services. The AMA describes consumer behavior as a complex interplay of information, behaviour, and environmental factors, whereby people exchange their lives with various social and physical variables. The world market is a study of customer variety, manufacturer, marketer, distributor, advertising media, cultures and custody, as well as the individual and psychological behaviour of course. There are, however, several parallels, given the prevalent diversity. The goal is to provide the marketer with conceptual and technological tools to use both profit and non-profit marketing practices. The study of consumer behaviour (CB) is very interesting to the advertisers, because it helps them to comprehend and forecast customer purchasing behavior on the market; it is not only concerned with what consumers buy, but also with why they buy it, where and when and how they purchase it and how frequently they buy it. Consumer research is the technique used to analyze consumer behaviour; it is carried out at every point of the consumer process: before buying, before buying and after buying. Research shows that two separate purchasers who purchase the same product may for different reasons, have paid different prices, have various emotional attachments to items, and so on. The analysis of consumer behavior is one of the most significant in business education, Professor Theodore Levitt of Harvard Business School says because it is a

marketing strategies depends on customer awareness, value and power. In other words, the effectiveness of a corporation is the achievement of organizational goals that can be accomplished by the above two approaches. That indicates that knowledge and information about customers are crucial to the creation of successful marketing campaigns, as the marketers are challenged to represent and evaluate customer & marketer interactions and consumer behaviour.

REVIEW OF LITERATURE:

Babakus, Cornwell, Mitchell, and Schlegelmilch (2014), have considered responses to untrustworthy customer conduct across six nations. Right now, responses to 11 deceptive purchaser conduct situations are examined utilizing test information from Austria, Brunei, France, Hong Kong, the UK, and the USA. Nationality is seen as a noteworthy indicator of how buyers see different sketchy practices. Sexual orientation is certainly not a noteworthy indicator, while age and strict association are seen as huge indicators of customer moral recognitions. Scrivens (2017), has contemplated the job of social showcasing in affecting shopper conduct business advertisers have directed their concentration toward the social government assistance part and are thinking about manners by which promoting methods can be utilized to advance help use, enhancements in way of life, and changing open mentalities. This paper analyzes the idea of what is named "social showcasing", and takes a gander at the challenges it faces, lastly examines the requirement for social arrangement experts to turn out to be increasingly mindful of the employments of and the issues identifying with the expanded utilization of social advertising by governments. Gordon , Castro, James, Victoria , Yani-De-Soriano, Sigurdsson, and Valdimar (2016), analyzed the customer conduct investigation and social promoting: The instance of natural protection Consumer conduct examination speaks to one advancement inside the conduct systematic convention of deciphering complex conduct, in which a particular calculated structure has been proposed (i.e., the Behavioral Perspective Model). As per this model, purchaser conduct happens at the convergence of a customer conduct setting and a person's learning history of utilization and is a component of utilitarian (intervened by the item) and instructive (interceded by different people) outcomes. This application highlighted explicit promoting techniques that ought to be embraced to alter every one of these operant classes. Kapoor and Kulshrestha (2014), contemplated the impact of discernment on Indian urban female The investigation was led with a goal to address the job of the style association of well-off female shoppers and their attire buy conduct, retailers and advertisers will have the option to precisely focus on this market portion. Moreover, the examination will widen our comprehension of customer conduct. It can consequently certainly add to bigger examinations worried about the upgrade of the residential market for fascinating attire and adornments. Shahina (2014), has considered a culturally diverse near investigation of female buyer conduct concerning the acquisition of beautifying agents by females in the UK and Bangladesh. Understanding purchaser conduct in a diverse domain is a basic piece of advertising exercises in a world that is turning out to be more buyer driven. This paper endeavors to clarify how customer conduct is impacted by social factors in Bangladesh. It is reasonable in nature and endeavors to reveal the key features of culture associated with forming choices on beauty care products buy by female buyers in the Bangladeshi culturally diverse condition. Dennis, Merrilees , Chanaka and Tiuwright (2017), have stated the e-customer behaviou reason – the basic role of this article is to unite clearly dissimilar but then interconnected strands of research and present an incorporated model of e-purchaser conduct. It has an auxiliary goal of animating more research in zones recognized as yet being underexplored. Newman & Chansarkar (2016), analyzed the shopper conduct of extravagance Aautomobiles: A relative report among Thai and UK Customers' Perceptions : The extravagance vehicle showcase in general is presently attempted a social change with extravagance brands appearing to be less remote, less unique, and less selective with the personal satisfaction improving. Thus, expanding rivalry between makes has increased the significance of brand character. As item guidelines keep on rising, the apparent picture of a vehicle make assumes a key job in the purchasing choice. The superior marques, for example, BMW, Lexus, and Mercedes-Benz must create characteristics and qualities that reflect changing social qualities which impact purchasers inwardly. Harris (2017), studied the overview of GB online purchaser conduct: The third yearly study of online buyer conduct, features the significance of online client experience. The overview reveals insight into powers driving this quickened online client experience center, including expanded customer power because of experience-sharing through internet based life. It additionally looks at customer incorporate retail, protection, travel and money related administrations. Andersson , Arvidsson and Lindstrom (2016), have analyzed the Coca-Cola or Pepsi; that is the issue – An examination about various components influencing shopper inclinations: The general reason for this paper is to increase a more profound comprehension of various universal and nearby factors influencing buyer inclinations on a neighborhood advertise. Worldwide publicizing and global sponsorship individually impact the neighborhood target bunch in various manners, yet they additionally influence universal brand. Ali , Tirmizi and Saif (2016), studied an exact investigation of purchaser drive purchasing conduct in neighborhood advertises: The significant discoveries of the examination showed a general feeble relationship of the arrangement of autonomous factors with the reliant variable at the same time, the top to bottom examination found that pre-choice phase of buyer buy conduct is the main variable that came about into solid relationship with the motivation purchasing conduct. The facts demonstrate that youngsters all the more regularly get pulled in to items showed on store retires and has more prominent propensity of motivation purchasing conduct however aftereffects of this paper indicated no relationship of drive purchasing in higher salary gathering of youngsters having common motivation purchasing inclinations. This examination announced new confirmations in the field of motivation purchasing conduct of shoppers relating to the neighborhood markets of the twin urban communities. Magid (2018), attested the examination uncovers shopper conduct and inclinations in online video: This exploration is a piece of the Magid Media Futures TM Practice, which overviews customers every year to recognize patterns and assist customers with actualizing item and showcasing techniques that address them. The online video segment of the current year's examination was supported by Metacafe. "Shortform video is a developing amusement type – unmistakable from online TV – that reliably demonstrates well known with individuals of generally changing foundations and tastes, as illustrated "Online TV, or conventional systems dispersing their shows on the Internet, is extremely simply the equivalent long structure programs, with a similar crowd, bolstered by similar commercials – just the conveyance stage is extraordinary. Munich (2018), has examined another investigation on German customer conduct: The examination's discoveries demonstrate a long haul move in purchaser conduct as opposed to a transient pattern. In some customarily immovably brand-based parts – arrangement; these days, usually, it's cost. Yet, that doesn't imply that brands have had their day and items may be sold based on cost in future.

BUYING BEHAVIOUR OF INDIAN CUSTOMERS

In the Indian consumer market, the production of modern urban lifestyles has greater disposable income. Increased consumer awareness in suburbs, cities and even rural areas has impacted buyer's conduct. According to McKinsey & Co.'s 2010 report, India is projected to become by 2025 the world's fifth largest consumer market. Increasing income in young people's hands, a growing economy and an increase in the supply of products and services and easy credit access all have given rise to new market segments and to rising debt acceptability-be it internet, credit cards, clothes, or organized retail. Business firms ' credit facilities grew rapidly. This demonstrates the great nature of the ever-changing market. Urban goods are purchased in India at a tremendous rate and influence the way consumers live and shop. In works cities the conventional method of cooking and cleaning is focused on simple and ready-to-serve food. Bulk buying from hypermarkets seems to be the norm now, rather than visiting the local market or store or sales representative regularly. For fact, a significant number of consumers frequent the malls instead of various shops next door.

► Trendy Life Style

Western influence has to a large extent on the new medium and high-class Indian market purchasing behaviour. Positive behavior towards western patterns is growing. In its context, the Indian customer is much more open-minded and creative. Foreign brands have gained wide acceptance for consumers in India, including items like: drinks, packaged food, food ready to eat, prepared food, baked goods, Personal care products, audio and video products, apparel and shoes, footwear, sportswear, toys and gift items.

► Spending Behaviour of Consumer

In recent years, Indian consumers have changed the way they spend their money on various items. The share of food and beverages that is invested on the basis is declining. Throughout urban India, consumer spending has been divided into food and non-food for average 30 days. Cereal and cereal alternatives, sugar, milk, fruits, edible oil and others are included in the food spending. Fuel and light and rest on shoes, soccer and other non-food expenses included non-food expenses. The higher income group in India spends more on luxury products and trendy products than consumer

PERSONAL FACTORS INFLUENCES

Buyer Behavior Buyer personal decisions also influenced buyer behavior as buyer life cycle stage, occupation economic situation life style and personality and self-concept.

  • Age and Life Cycle: People change theirs‘ tastes its depend up on their recreation are often age related marketers often define their target in terms of life cycle stage and develop products and marketing for each stage.
  • Occupation: A persons‘ occupation hardly affects the goods and services which are bought, because most of time people comparingly blue collar workers buy more than white collar workers regarding costs and ties. Marketers always identify the occupational group that acquires the above average interest in their production and services.
  • Economic Circumstances: A persons‘ economic connections always play a crucial role to effecting the product choice here consumer income, saving, willingness, borrowing power that occur economically.
  • Life Style: There are so many different classifications and lifestyles. The way in which a person lives in his or her life, desires and beliefs is clear to the way in which he or she live. The lifestyle reveals a personality through several research organizations, which have established a definition of lifestyle, through behaviors, desires and opinions.

MARKETING STRATEGY BASED ON CONSUMER BEHAVIOUR

The key to marketing strategy is to give the target consumers more value than its rivals do. The interest of the consumer is the contrast between the full product profit and the costs of purchasing the products. From the customer's point of view, the organization must consider interest. Perhaps a certain price doesn't matter much for the company, but for the consumer it is a deal breaker. Pricing is difficult because it must be optimised by businesses for maximum revenues and also for better sales. This means no higher profit at a high price. A lot of revenues are a bit better, but only when the business continues to grow. Organizations must predict customers ' reactions and needs to achieve the best value for the best money, thereby maximizing profits. Nonetheless, consumer behaviour is the foundation

Figure 1: Marketing strategy

It is important to devise marketing strategies. Strategies aim to give more value to customers than to competition. Marketing strategy includes: product, quality, communications, distribution and service mixes marketing strategy. A whole set of features of a company must be known as the complete product. This element is known as the complete product. The final product is market-oriented, providing value for the preservation and enhancement of quality of life in general (Online article–Company research methods). The perception or feeling of the commodity and the business are the principal influences. In the whole marketing strategy, the impacts and values of the customer play a major role. Cognition and social influences also impact the customer. These have a so-called double-way influence. This indicates that these variables are determined by the customer and that they have an effect on the consumer at the same time. Consumers describe the knowledge structure of a product, its options and the expectations which are all components of an integral entity which is a customer. Communication allows business and product information flow. All of this relates to market research and business strategy growth and the availability of high value goods at low prices. (see also Figure 2)

Figure 2: Impact factors on the consumer

As shown in this figure, the reputation of customers, businesses, goods and factors of impact are clearly seen. They are a unit that helps define the marketing strategy. Every element of the market and all factors should be taken into account by the company. Only then can the company supply sufficient products to fulfill consumers ' needs and wishes, ensuring a stable profit and market position automatically. Very often the consumer perceives the product differently from what the company perceives this product. This is because of a misunderstanding of the product's purpose, quality or price. There are very expensive, low-priced goods that do not sell as high-priced products of lower quality. The price is why the experience is different. Another case is that a company, for example, produces a mobile device, and the company finds this invention to be very precious and demands for a higher price for the mobile device. However, this particular feature is not considered groundbreaking by customers and they want to pay no additional fee for it.

FACTORS INFLUENCING THE CONSUMERS‟ BEHAVIOUR:

Next we are talking about the factors which are very important in relation to influences on consumer behavior. The analysis of consumer behaviour, because it includes several variables and the propensity to communicate with and affect each other, is quite difficult. Such variables are divided into 3 main sections known as the major general consumer behavioral factors. Imagine three concentric circles, one at the outer most, one in the middle & one at the inner most, and they represent the following.

1. External Environmental Variables Influencing Behaviour:

These are the factors influenced by external contexts, such as: Culture and subculture and a social class; Family and interpersonal influences, and Other influences (not categorized into one of the six above), such as the geographical, political, economic or religious

2. Individual Determinants of Behaviour:

In the middle ring are represented significant individual determinants of consumer behaviour. These are the characteristics of the human mind. Such variables are personal and determined by the abovementioned collection of external factors and affect how customers make a decision about products and services. They are: personality and self-concept, motivation & involvement, interpretation and processing of information, learning and memory, attitudes.

3. The Consumer Decision Making Process:

The purchase decision is a function of the complex interaction between external factors and personal characteristics. The internal circle refers to the process of consumer decision-making regarding the products and services, the main steps being: problem recognition, information search, application evaluation, buying decision, behaviour. When we know the factors that influence the buying habits of any customer directly or indirectly, it is easier to be aware of marketing and its activities. The next thing we will cover is marketing and brand strategy.

MARKETING:

The method of marketing is related to the promotion of goods or services for sale. It is a social and managerial procedure, by creating and exchanging products and values with individuals and groups, which obtains what they need and want. It is an integrated process by which businesses generate customer value and build strong marketing connections to customers, maintain the customer and satisfy customers. At the client's center of operation. In all companies, marketing management is critical. The highly specialized business management, business administration or just business management research today plays an important role in marketing management. marketing management feature. This is because this management functional area receives the money and operates next to the public or outside the company. The management is most difficult to control these two attributes to the desired advantages, because neither of them is directly controlled by the marketers. This means that other functional areas are not useful, but do not participate directly in the above-mentioned activities. Likewise, customers and clients play a very important role in the marketing strategy report, as these are the people who buy the organization's products and services at last and the business is on the move to make them buy in order to earn revenues.

1. Buyer Recognition: the consumer has to realize there is a problem or need that needs to be fulfilled. The effective marketer will identify there is a difference between the actual state of the consumer and the desired state, and try to fulfill this state of deprivation. 2. Information Search: in this stage the buyer considers all the alternatives present. For instance, according to the example above, the customer would look at all thirst quenchers such as fizzy drinks, bottled water, juices and ice lollies. The most information a customer gains about alternatives is through commercial sources, such as advertisements and campaigns. However information about intangible products in the service industry would mostly come from personal experience or experience from others. 3. Evaluation: Of Alternatives: this is where all the information is gathered and evaluated to help make the purchasing decision. These three stages are important, for marketers to understand consumer behavior and what influences purchasing of a certain product category and brand. 4. Purchase Decision: this is the stage where purchasing of the most preferred alternative takes place. However the product category, brand, reseller, timing and quantity all play a role in the purchase decision. 5. Post Purchase Decision: Even after the order, excellent marketers maintain a good relationship with the consumer. This will reduce the risk of cognitive dissonance with the product from the consumer. Effective after-sales facilities and productive ads could also be offered to reduce the negative effects of consumer cognitive dissonance. More customers are attracted with words of mouth and repeated transactions are made. In order to be economically efficient marketers, the future consumers of the marketing mix should also be considered. It does not make sense to spend time on those who never buy your company. Successful segmentation of the market is therefore extremely important. Market segmentation means splitting the market into groups that share and want similar needs. This can be achieved by segmenting consumer factors such as geographic, demographic, psychography and behavioral categories. This is possible. For example, those in ages 12 to 21 who are relatively social and are able to afford a drink like coke, and those who are aware of a drink such as coke and know their global image. Customer buying behavior and the products they use are two essential elements for effective and efficient marketing. One of the main components of corporate management is brand strategy. Marketing growth has been dominated in recent decades by mature markets and overcapacity. Industries have then changed their attention to gain consumers ' interest and remain profitable. The word "marketing philosophy" refers to the need for and motivation for target markets and the desire to achieve organizational goals. This argues that a company should anticipate and meet the needs and expectations of customers more efficiently than rivals in order to satisfy its organizational objectives.

MAIN APPLICATIONS OF CONSUMER BEHAVIOR

1. Marketing Strategy: It is for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and it is important to please initial customers, since they will in turn influence many subsequent customers‘ brand choices. 2. Public Policy: In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers‘ attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. 3. Social Marketing: It involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. 4. Studying Consumer Behavior Make Us Better Consumers: Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.

CONCLUSION

An company must produce high-qualité, customized, medium-sized priced products in the modern business environment so that it can maintain a strong market position. The effectiveness of a new product or invention is measured by many results. Product perception, consumer communication and market situation overall is crucial to understand the requirements and wishes of customers. If you want to enter a new market segment, you must ensure that the competition isn't fierce and have a plan to secure a strong position on the new market. Market research is required in this respect. Market research helps businesses to learn about their new and future customers. It is very important to plan and record all possible steps. It's like shooting without scope without market research. If the market in which the firm wants to take a role is not investigated, the organization could "shoot its own leg." The organization will learn about its new customers by means of various methods and thus ensure that the goods offered meet customers ' demands. We may conclude that even the best companies will struggle in the new market if there has not been rigorous testing, with the most resources and the most innovative products available. Consumers will not buy a product if they do not meet their desires and needs, even if it is of high quality and low price.

REFERENCES

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Corresponding Author Sangeeta Bansal*

Assistant Professor, Hindu College Sonepat, Haryana-131001